Calculate the IRR for a project with $10,000 dollars of initial cash outflow followed by three years

Question:

Calculate the IRR for a project with $10,000 dollars of initial cash outflow followed by three years of $2,500 cash flows and a single lump sum inflow in the final year of $6,000. (Hint:

this is an annuity, final year annuity payment is grouped in with final cash flow.)

a) 13.3%

b) 12.3%

c) 14.7%

d) 11.2%

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